Economists expect the Bank of Canada to hold its benchmark interest rate steady for the fifth straight time when it meets Wednesday, but its messaging could shed light on how it is navigating ongoing geopolitical uncertainties.
The central bank held its policy rate at 2.25 percent when it last met in April. Bank of Canada governor Tiff Macklem at the time did not rule out future adjustments depending on how risks play out.
He had said “monetary policy may need to be nimble” as the central bank watches effects from the war in Iran on energy prices, along with the outcome of the upcoming review of the Canada-United States-Mexico Agreement….